_______ ________ people who decide to watch FIRST and then decide What to watch.
1. Grazing viewers
What are some perceptions of passive viewers?
1. Audience is unselective ( will take whatever is offered and without question)
2. Audience looks at programming as replaceable
3. Often have third person bias( "this doesnt apply to me")
What are some some things to consider when promoting to the passive audience?
1. Promotional effects are short term
2. Frequency and Reinforcement are important concerns
3. Promotions should focus on encouraged sampling
Viewer _____ attempts to differentiate how people select programs to watch
Viewer ________ attempts to differentiate between how individuals watch the prgrams they have selected
True or False
The cable networks combined audience share in prime time has been greater than the combined share of the four biggest broadcast networks.
What opened the door to new opportunities for cable growth and profitability in the 1990s?
Government regulation aimed at restricting cable business practices.
Equity = MSO ownership position.
What are broadband networks?
Deliver digital television, video-on-demand programming (VOD), music, DVR, voice and telephony and high speed modem service along with traditional cable service.
What does traditional cable service consist of?
Basic, premium, and pay-per-view.
4-Ps of marketing:
Six types of promotion
1. Network and national trade sales promotion and advertising
2. System acquisition and retention advertising
3. New product marketing
4. Direct sales
5. Public relations
6. Program tune-in
What are the cable system operators’ marketing goals?
1.Acquiring and retaining subscribers, rolling out new services, and establishing a brand image.
7 tasks to accomplish cable system operators marketing goals are:
1.Persuade nonsubscribers to take service,
3.Reduce church (turnover among subscribers),
4.Build brand image,
5.Manage subscriber perceptions,
6.Introduce new services, and
7.Encourage viewing of cable-only channels.
Turnover among subscribers
How is door-to-door personal selling used?
To launch a system in residential areas and marketing new product tiers and advanced telecommunications services
Packaging of digital channels or high-speed Internet access and phone service at a discounted package price.
When cable operators develop cross-marketing programs with long-distance telephone services, that offer discounts to subscribers in selected markets.
What are two was to remarket basic service?
1.Remarketing – reselling to households that chose not to subscribe during previous marketing efforts.
2.Regaining upgrades to expand basic and premium channel packages.
What is cable’s main competition?
How did DBS services (Satellite, Direct TV, Dish Network) lure away cable subscribers?
1.Because they can distribute nationally by combining national and local marketing and advertising.
1. Using enhanced in-house database to reach potential customers through direct mail and telemarketing.
PRIZM cluster system?
PRIZM identifies blocks by demographics and permits tailored direct-mail appeals to residents’ likely viewing interests
Who uses PRIZM cluster system and why?
1. System operators use PRIZM to supplement their own database enhancement effort
Two cost benefits of PRIZM cluster system?
2.Increases response rates
2 Nonsubscriber groups:
1.Formers – already have been subscribed to cable television
2.“Nevers” – those who have never subscribed to cable television
Who are former pays?
1.Basic subscribers whom downgraded – canceled one or more pay channels
What are Two groups of “Nevers,” (people who have not previously subscribed to cable television)
1.Young people just starting their own households.
2.Those people who have refused cable for a variety of reasons.
True or False?
Marketing plans that use multipurpose advertising tactics have a greater success getting people to upgrade that marketing plans that target just one subgroup of formers, nevers, or downgraders.
____________Persuading consumers to subscribe to more than they can afford. Results in unwanted churn (Turnover among subscribers).
True or False? Subscriber retention (maintain current subscribers) and upgrades (getting subscribers to add channels or services) are more important than subscriber acquisition (getting new subscribers).
Why is brand-building a good strategy for retaining subscribers?
1.Because it increases subscriber’s satisfaction and loyalty.
What are some examples how to market new services?
1.Offering cable modem service that provides high-speed Internet acces to subscribes
2.Creating telephone services
______ are unsold commercial positions on networks and local channels
self-promotion using promos that encourage cable channel viewers to stay tuned or come back for a later program is called???
___________ __________ means having the technical equipment needed to place local spots in position.
What is a problem with cable systems having insertion equipment?
1.Cable systems cover up different times on different channels meaning they do not know when, where or how much cross-promtion they are getting.
Consumer marketing targets tune-in spots
True or False?
Advertising sales are designed to help advertisers and agencies decide where to place their buys
What are four keys to sales promotion by cable systems?
1.Employ a regional or national sales representative firm to sell their spot time.
2.Have their own sales staff to sell time
3.Use a local advertising agency to sell their time in the local market
1. What is interconnect?
2. How is it beneficial?
1. A cable connection with other cable systems in one geographic area to distribute the same commercials.
2. This allows cable systems to sell ads on a multi-system basis.
Why do cable system operators exploit network programming?
To target specific categories of ad clients with promotional tie-ins
___________ __________ arecontractual links between two companies for promoting both.
What was the “Nick at Nite at the 76ers,” promotion designed for?
1.To draw families to a professional basketball game and turn the spotlight on Nick characters like Ren and Stimpy.
Mall promotions and special system operator events generate advertising revenue beyond the airtime sold while increasing live community presence.
True or False?
How can a co-branded event(double-sponsored)be effective?
1.Operators get extensive off-channel promotional exposure from statement stuffers, retail point-of-sale displays, anything showing their names and logos and those of the advertiser.
Why do pay networks spend a larger percent of their revenues on marketing to viewers than marketing to basic networks?
1.Because pay channels rely entirely on subscription revenues.
What is the key to building a cable network’s brand?
1.Identifying a viable niche and developing a positive image based on programming and promotion.
How is a niche developed?
1.By going after an audience that remains un-served by the established networks.
2.By challenging the existing services for the cable network’s audience.
____________ _________________ are the creation of new networks under an existing brand and logo.
Why are line-extensions important?
1.They position braded companies for a future of abundance.
is a phrase intended to better define a network’s offerings and clarify its position compared to competitors. Ex: VH! Logo paired with Music First.
Pay services are dependent on advertisers for revenues.
True or False?
False, Pay services are not dependent on advertisers for revenues.
__________ __________ ________ provide an umbrella over its advertising campaigns for movies and series. Ex: Re-cap major awards or feature great moments
Prestige branding spots
Name two suppliers of PPV cable programming.
1.Viewers Choice and Request
What are the most common tactics used by cable networks for reaching advertisers?
3.Extra’s ( multimedia package and bundling deals)
_______ ________ _________ promotes cable as an advertising medium and sponsors an annual national conference to showcase industry progress for advertisers and agencies
Cable advertising Bureau(CAB)
What is trade advertising designed to do?
1.Interest cable operators in affiliating with a cable network.
Why is acquiring affiliates the greatest marketing priority?
1.They provide a significant number of cable subscribers to reach. Without that a network will not be in position to attract advertisers.
What are some ways to generate interest in a new channel?
1.High-quality programming with targeted appeal
2.Support by a strong affiliate sales organization
3.Supported by big-budget consumer promotion
4.Powerful trade marketing
The most fundamental marketing tool for any new network is the product itself.
Brand-ability – having lots or original programming
What are some affiliate incentives?
1.Upfront carriage fees
2.Discounts or waivers of the subscriber fee
3.Expanded local ads
What is Remarketing?
1.The reselling of pay services to subscribers.
Who splits the monthly revenue from pay subscribers?
1.The local system and network
Bill stuffers – advertisements enclosed in monthly bills
Door hangers – advertisements in plastic bags left on the doorsteps of nonsubscriber homes.